UPDATE 1-WD-40 quarterly profit beats Wall Street view

* Q3 EPS 41 cents vs est 38 cents

* Q3 gross margin at 50.9 pct vs 46.5 pct last year

* Q3 sales down 16 pct

* Sees 2009 EPS of $1.45 to $1.55

July 8 (Reuters) - Household lubricants and cleaning products maker WD-40 Co (WDFC.O) posted a better-than-expected third-quarter profit helped by improved gross margins.

Net income at the San Diego-based company fell 15 percent to $6.9 million, or 41 cents a share, from $8.1 million, or 49 cents a share, a year earlier.

Analysts on average were expecting earnings of 38 cents per share, before special items, according to Reuters Estimates.

Sales fell 16 percent to $68.8 million, short of analysts' expectations of $70.0 million.

Gross margin rose to 50.9 percent in the third quarter from 46.5 percent last year, helped by price increases over the past year, benefits from changes to the company's supply chain and declining oil prices.